|Finance (No. 2) Bill - continued||House of Commons|
|Schedule A1, APPLICATION OF TAPER RELIEF - continued|
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Special rules for postponed gains
| 16. - (1) Sub-paragraph (3) below applies where the whole or any part of any gain which- |
falls by virtue of an enactment mentioned in sub-paragraph (2) below to be treated as accruing on or after 6th April 1998 at a time (whether or not the time of a subsequent disposal) which falls after the time of the actual or assumed disposal mentioned in paragraph (a) or (b) above ("the charged disposal").
| (2) Those enactments are- |
| (3) In relation to the gain or part of a gain that is treated as accruing after the time of the charged disposal- |
and, accordingly, the end of the period after 5th April 1998 for which that asset had been held at the time of the disposal on which that gain or part accrues shall be deemed to have been the time of the charged disposal.
| (4) In relation to any gain that is treated by virtue of- |
as accruing after the time of the disposal from which it accrues, references in this Schedule to the disposal on which the gain accrues, to the asset disposed of on that disposal and to the time of that disposal shall be construed disregarding that subsection.
| (5) It shall be immaterial for the purposes of this paragraph- |
Special rule for property settled by a company
| 17. - (1) No part of any chargeable gain accruing to the trustees of a settlement on the disposal of any asset shall be treated as a gain on the disposal of a business asset if- |
| (2) Subject to the following provisions of this paragraph, a company which is a settlor in relation to any settlement shall be regarded as having an interest in a settlement if- |
| (3) This paragraph does not apply unless the settlor or an associated company is within the charge to corporation tax in respect of chargeable gains for the accounting period in which the chargeable gain accrues.|
| (4) In this paragraph "derived property", in relation to any property, means income from that property or any other property directly or indirectly representing proceeds of, or of income from, that property or income therefrom.|
| (5) For the purposes of this section a company is to be treated as another's associated company at any time if at that time, or at another time within one year previously- |
| (6) In this section "settlor" has the meaning given by section 660G(1) and (2) of the Taxes Act.|
| (7) This paragraph has effect subject to paragraph 20 below.|
Special rules for assets acquired in the reconstruction of mutual businesses etc.
| 18. - (1) Where- |
paragraph 2 above shall have effect (notwithstanding that section) as if the time of that person's acquisition of the shares were the time when they were issued to him.
| (2) Where- |
paragraph 2 above shall have effect (notwithstanding anything in section 217B) in relation to the interests and rights in the incorporated society, or the branch of the incorporated society, which that person had immediately after the change, as if the time of their acquisition by him were the time of the change.
| (3) In this paragraph- |
Special rule for ancillary trust funds
| 19. - (1) Use of an asset as part of an ancillary trust fund of a member of Lloyd's- |
| (2) In this section "ancillary trust fund" has the same meaning as in Chapter III of Part II of the Finance Act 1993.|
General rules for settlements
| 20. - (1) Where, in the case of any settlement, the settled property originates from more than one settlor, this Schedule shall have effect as if there were a separate and distinct settlement for the property originating from each settlor, and references in this Schedule to an eligible beneficiary shall be construed accordingly.|
| (2) Subsections (1) to (5) of section 79 apply for the purposes of this paragraph as they apply for the purposes of that section.|
General rule for apportionments under this Schedule
| 21. Where any apportionment falls to be made for the purposes of this Schedule it shall be made- |
|© Parliamentary copyright 1998||Prepared 6 April 1998|